CBI Warns New Agency Worker Regulations are ‘Bad News for the Economy'

1/2/2010

New regulations designed to bring the EU's Agency Workers' Directive into practice have gone before Parliament in time to have the rules on the statute book before the end of this Parliament.

These will entitle temporary workers to many of the same employment rights as permanent staff. After 12 weeks in an assignment, agency workers will be entitled to the same treatment on many working and employment conditions, including pay and holidays, as if they had been hired directly.  Some benefits begin from day one, including equal access to facilities such as child care and transport services. Provisions are included to tackle avoidance including repeat assignments designed to stop contract workers acquiring these rights.

John Cridland, the CBI's deputy director general, raised concerns, "These regulations are bad news for the economy as they will hamper job creation. Employment agencies help over a million people find work and these proposals will make it more expensive for companies to use agency temps by increasing bureaucracy."

Mr Cridland criticised the government for doing more than required under the EU rules by making employers include temps in pay-based performance appraisals, arguing that the extra bureaucracy would discourage firms from hiring temporary workers.

The CBI did, however, welcome the decision to delay introducing the new rules until the end of next year, and the rejection of a union backed proposal on stronger measures to impose them.